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The purpose is to centralise common functionality that has over time been distributed to business units.
Its role is to remove overheads that have over time increased in a business unit in order to allow the business unit to focus on its core functional requirements.
Examples of this can be centralisation of IT, Payroll, Accounts Receiveavle, Procurement, HR, Legals.
By centralising into a shared services unit the goal is to reduce the resources need to carry out these functions - which aims to reduce overheads.
Interestingly this is a reversal of the concepts that seem to have been popular during the80-90's and is more in line with how business' operated up to that time.
this weblink describe shared services unit (SSU), Refer to that
https://sharifstrategy.org/shared-services-unit/
To service multiple units through optimal use of time which is shared so as to reduce costs.
Shared Services unit, an organizational entity that signals a fundamental change, not only in the way staff services are evaluated and delivered, but in the very structure of an enterprise as well.
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